Cyprus is an attractive location for the establishment of an IP holding and development company, Cyprus offering an efficient Intellectual Property (IP) tax regime coupled with the protection afforded by EU Member States and by the signatories of all major IP treaties and protocols.
The new IP regime complies with the provisions of the modified ‘nexus approach’, whereby for an intangible asset to qualify for the extremely beneficial tax advantages, there needs to be a direct link between the qualifying income and the direct qualifying expenditure contributing to that income.
In brief, an amount equal to 80% of the qualifying profits earned from qualifying intangible assets will be exempted from any tax.
Qualifying intangible assets comprise of:
- Patents, as defined in the Patents Law
- Computer software
- Other IP assets which are legally protected, such as utility models, orphan drug designations.
The definition of qualifying intangible assets specifically excludes business names, brands, trademarks, image rights and marketing rights of products and services.
Global Consultants have a team of professionals dedicated to providing expert professional services in relation to intellectual property rights. Our IP specialists possess extensive practical knowledge, understanding and experience of the IP regime in Cyprus and abroad and provide a wide range of services, at competitive fee rates, to ensure our clients achieve their goals.